On Tuesday, the U.S. Securities and Exchange Commission (SEC) acknowledged another exchange filing for an XRP exchange-traded fund (ETF). The regulator accepted Cboe BZX Exchange’s request to list shares of Bitwise’s proposed XRP ETF, signaling progress in the approval process.
Bitwise became the first asset manager to submit an S-1 application for an XRP ETF in the U.S. Soon after, other issuers, including WisdomTree and 21Shares, followed with similar filings. A few months later, Cboe BZX Exchange filed a 19b-4 application to list Bitwise’s fund. The SEC has now acknowledged this filing, officially launching its review process.
The agency follows a strict timeline and must approve or reject the application within 240 days of its publication in the Federal Register. This timeframe gives issuers and investors a clear expectation for the decision.
Related article: XRP Open Interest Rises to $4.3B, Hinting at Further Price Action
SEC Classifies Bitwise XRP ETF as Commodity-Based Trust
XRP community member Chad Steingraber highlighted an important detail in the SEC’s acknowledgment. He pointed out that the regulator categorized the Bitwise XRP ETF as “Commodity-Based Trust Shares.” This classification allows investors to gain exposure to XRP’s price movements through the fund.
Following this recognition, speculation emerged that the SEC now considers XRP a commodity. However, labeling the Bitwise ETF as a commodity-based trust does not confirm XRP’s classification as a commodity. A similar debate arose after the SEC acknowledged 21Shares’ XRP ETF.
Related article: Ripple CEO: SEC’s XRP ETF Decision Signals Crypto Progress
Addressing the speculation, FOX Business journalist Eleanor Terrett clarified that the SEC only acknowledged applications under a securities framework. She suggested that the regulator’s stance on XRP’s classification would become clearer during the approval process.
SEC Reviews Three XRP ETF Applications in One Week
Within five days, the SEC acknowledged three XRP ETF applications. The regulator first recognized Grayscale’s application on February 13, followed by 21Shares’ on February 14. On February 18, it acknowledged Bitwise’s filing, bringing the total to three in less than a week.
These acknowledgments do not guarantee approval but increase the likelihood of success. Bloomberg analyst James Seyffart previously estimated a 65% approval chance.
While the SEC’s final decision remains uncertain, the rapid recognition of these filings suggests growing momentum for an XRP ETF in the U.S.
